Why is ETH important for market movements?
ETH is not only the second largest cryptocurrency by market capitalization, but it is also the leading indicator of the state of the altcoin market. When ETH rises strongly, money usually starts to gradually flow into the rest of the altcoins after stabilizing. Therefore, any successful breakout of ETH above 4000 may ignite a new wave of mini Altseason.
We have witnessed a strong rise of $ETH in the past weeks from levels around $1537 to a peak of $3860, in one of the strongest upward waves of this year. This sharp increase did not come out of nowhere, but coincided with improved risk appetite, and a return of liquidity to the cryptocurrency market, alongside positive technical signals on most time frames.
๐น Was the recent correction negative? Not at all. The correction that happened recently after touching the level of 3860 was very natural after this strong rise, and can be interpreted as a temporary profit-taking process and liquidity accumulation before attempting to launch again. The Relative Strength Index (RSI) is still above 70 (currently 76), which reflects strong momentum but also indicates that we may need a short cooling-off period before the next rise.
๐ธ Upcoming ETH targets: Eyes are now on the psychological level of $4000, which represents strong resistance and may be a gateway to test higher levels at $4200 and then $4500 if the current momentum continues and the price succeeds in closing daily above 3860.
๐ For monitoring:
Watch for a breakout of the level 3860 and close above it with a daily candle.
Watch for RSI stability, and avoid entering an overexhaustion phase.
Monitor leading indicators like TOTAL3 and BTC Dominance to confirm the altcoin season.
โ๏ธ Summary: The current movements of $ETH are not just random rises, but driven by technical momentum and increasing institutional interest. Surpassing 4000 and achieving new historical highs will be a pivotal moment in the market and may open the door for good opportunities in altcoins.
Do you think ETH will succeed in surpassing the 4000 barrier?
And which altcoin are you waiting to rise with this momentum? ๐ฌ๐
